Construction Draw and Financing Planner
Draw schedule, interest during construction, and the peak cash you actually need available.
A construction mortgage advances in stages against inspections, and you carry the gap between money spent and money advanced. This tool builds a draw schedule from your build cost, applies a holdback, and shows the cash you must have available at each stage plus the interest accruing during construction — the two figures buyers most often discover late.
Construction Draw and Financing Planner
Land equity plus every dollar spent but not yet advanced. This is the figure that catches people out, and it peaks mid-build.
Walked month by month on the outstanding balance. The common shortcut estimate would give $47,775.
Draw schedule
Every percentage is editable. Lender schedules differ substantially — replace these with your own lender’s before relying on anything below.
| Stage | % of cost | Cost incurred | Advance released | Held back | Cumulative cash gap |
|---|---|---|---|---|---|
| Excavation and foundationFirst inspection. Winter work adds hoarding and heating cost here. | $210,000 | $189,000 | $21,000 | $21,000 | |
| Framing and lock-upRoof on, windows and doors in. The largest single draw on most schedules. | $420,000 | $378,000 | $42,000 | $63,000 | |
| Mechanical, insulation and drywallRough-ins inspected before drywall closes the walls. | $350,000 | $315,000 | $35,000 | $98,000 | |
| Interior finishingMillwork, tile, flooring, fixtures. Where selection delays bite. | $308,000 | $277,200 | $30,800 | $128,800 | |
| Completion and possessionFinal inspection, deficiencies, occupancy. | $112,000 | $100,800 | $11,200 | $140,000 |
Balance and interest, month by month
Interest accrues on what has actually been advanced, so early draws cost more than late ones. This is why the single-rate shortcut misses.
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- Lender draw schedules vary substantially. The defaults are conventional, not universal — replace every stage percentage with your own lender’s schedule before relying on the output.
- It assumes draws are released promptly after each inspection. In practice they are not always, and a delayed draw enlarges the equity gap this tool shows.
- It uses a single fixed rate for the whole period. A variable-rate construction facility will not behave this way.
- It does not model lender fees, appraisal costs, inspection fees, or the cost of any interim financing you use to bridge a gap.
- It is not financial advice, not an approval, and not a lender quote. Take the output to a construction-financing specialist and have them correct it.
The problem it solves
Construction financing is the part of a custom build that surprises people who have bought a house before, because it works nothing like a normal mortgage. The lender does not hand over the money at the start. It advances in stages, after an inspection confirms the work is in place — which means the work is paid for before the advance arrives.
That gap is real money and it is yours. On a large project the peak equity requirement mid-build can be a very substantial sum, and it arrives at the same time as the interest accruing on everything drawn so far.
The statutory holdback compounds it. Alberta’s prompt payment and construction lien framework requires a percentage of each payment to be held back for a lien period, which further separates work performed from money released.
This tool makes that visible as a schedule instead of a surprise. It is the conversation to have with a lender before signing a building contract, not at the second draw.
How the arithmetic works
Draw stages
The default schedule splits construction across the conventional inspection milestones — foundation, framing/lock-up, mechanical and drywall, and completion — with an editable percentage of total cost at each. Lenders differ, so every stage percentage is editable and the tool warns if they do not total 100%.
The equity gap
For each stage the tool computes cost incurred, the advance released against it, and the difference. That difference — plus any holdback — is cash you must have available. It is tracked cumulatively, and the largest cumulative figure is reported as your peak cash requirement, which is the number that matters.
Interest during construction
Interest is calculated on the outstanding advanced balance, month by month, at the rate you enter, for the months you specify. Because the balance rises through the build, interest is not simply rate × total × time — early draws accrue for longer, and the tool follows the actual balance rather than approximating.
Holdback
A holdback percentage is withheld from each advance and released after the lien period. Alberta’s framework uses a major lien fund and a defined lien period; the default here is editable because the applicable percentage and period depend on the contract and the jurisdiction.
Questions
Why does the bank not just give me the money up front?
Because until the house exists there is very little security. The lender advances against value in place, confirmed by inspection, so the loan is always backed by something built. That is entirely reasonable from their side and it is why the borrower carries the timing gap.
What is the peak cash requirement and why does it matter?
It is the largest amount you need available at any single point, counting money spent but not yet advanced plus holdback withheld. It is almost always larger than people expect and it typically peaks mid-build. Running out at that point is the worst possible time, because the project cannot pause cheaply.
Does the holdback come back to me?
The holdback is withheld from payments to the contractor and released after the applicable lien period, provided no lien is registered. It protects against unpaid subtrades registering liens against your title. Confirm the applicable percentage and period for your contract with your lawyer — this is exactly the kind of detail that varies.
- Alberta Prompt Payment and Construction Lien Act — consulted August 6, 2026
- Canada Mortgage and Housing Corporation — financing new construction — consulted August 6, 2026
External sources are cited so you can check them. Regulations change; confirm anything you intend to rely on with the issuing authority directly.
A tool narrows the question. It does not answer it.
Every figure here depends on inputs only your specific parcel and your specific builder can supply. Tell us what you are building and we will point you at the research that applies.